On a conference call with analysts in February, Chambers said the company's cost management was "in pretty good shape." He summarized by saying: ""In very direct terms we are not going to consider a layoff at this point in time." However, the pace of cuts isn't keeping up with sales declines. And now Cisco may have to do the unthinkable. "The buzz is getting stronger, so it's anyone's guess when it's announced," says another analyst who asked not to be named. "But probably not before they report earnings in early May."